Indias merchandise exports contracted 12.2 per cent year-on-year (YoY) in December to $34.48 billion as slowing external demand in the middle of recession fears in developed economies continued to weigh on outbound deliveries, the information released by the commerce and industry ministry showed.

Still in the very first nine months of the current fiscal year, exports grew nearly 9 per cent. The latest decrease in the value of outbound deliveries can likewise be attributed to the analytical impact of a high base because December 2021 witnessed the second-highest month-to-month exports in the previous fiscal year at $39.3 billion. According to Barthwal, a dive in the export of electronic goods can be credited to rewards being offered to business under the production-linked incentive (PLI) scheme.

Rice exports, too, have increased, in an indication that India is trying to end up being a source of food security for other countries. Despite recessionary conditions, India has had the ability to preserve an excellent level of exports for textile items, he stated. On a cumulative basis, exports experienced 8.8 per cent development throughout April-December and stood at $332.76 billion.

Given cumulative development up until December 2022 and indications of a slowdown in worldwide economic activity, there is cautious optimism about international trade in the last quarter of the current financial year, a main declaration stated. Non-petroleum and non-gems and jewellery exports, likewise known as core exports, fell 8.5 per cent in December to $27 billion. A Sakthivel, president of the Federation of Indian Export Organisations, said that the decrease in product exports is a reflection of the toughening international trade conditions on account of high stocks, economies going into a recession, high volatility in currencies, and geopolitical tensions.

The drop in commodity prices and constraint on some exports with a view to stemming the rate increase in the domestic market have actually likewise impacted the growth numbers, Sakthivel said, adding that the coming months would be challenging unless both international financial growth and geopolitical scenario improved significantly.